Grayscale’s Large Cap Digital Assets Fund Is Now More Bitcoin Heavy

...and Ethereum shy!

Grayscale’s DLC Fund Offers Exposure to the top 5 Crypto Assets

Grayscale’s (GBTC) Digital Large Cap Fund or DLC Fund enables investors to gain exposure to the price movement of a diversified mix of large-cap digital assets through a traditional investment vehicle, without the challenges of buying, storing, and safekeeping digital assets. The fund was launched two months back (on February 1st, 2018) and currently has about $8.5 million worth of digital assets under management. The fund invests in a combination of large-cap digital assets that collectively comprise 70% of the entire digital asset market; namely, Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Bitcoin Cash (BCH), and Litecoin (LTC).

Change in Holding Composition Over Time

Having been launched during a time when the cryptocurrency market’s mood was and has been bearish since then, the fund has returned -44% since inception; -45.26% over the past month (as of April 6th, 2018). The company recently tweeted about a change in the holdings in its DLC Fund over time:

3/ Although no new assets qualified for inclusion following DLC’s first Quarterly Review, the below table highlights how DLC’s weightings have changed from inception (2/1/2018) through the end of March (3/31/2018):$BTC$ETH$XRP$BCH$LTCpic.twitter.com/KIYPiVTfsK

An interesting development that has happened with the fund recently is the change in the funds’ composition over the past 2 months.

At launch, the fund had 47.6% of its assets allocated in Bitcoin (BTC), with Ethereum (ETC) taking the next biggest share of 31.5%. Allocations to Ripple (XRP), Bitcoin Cash (BTC) and Litecoin (LTC) stood at 11.6%, 6.8%, and 2.5%, respectively.

By March 1, 2018, the fund had increased its exposure to Bitcoin (BTC) by 6.4%, while reducing its exposure to Ethereum (ETH) by 6%. Ripple (XRP), Bitcoin Cash (BTC) and Litecoin’s (LTC) weight in the fund stood at 10.7%, 6.3%, and 3.5%, respectively.

DLC Is Now More Bitcoin-Heavy, Ethereum-Shy

By this month (April), it appears the confirmed that the company’s DLC fund is in the mood to get Bitcoin (BTC) heavy while reflecting a rather bearish stance with respect to Ethereum (ETH). The fund’s exposure to Ethereum (ETH) was further reduced by 6.1% (a total of 12.1% down since inception). Accordingly, Ethereum now constitutes 19.4% of the fund’s allocation. Meanwhile, Bitcoin’s dominance over the DLC fund continued to rise with the company increased its exposure to the cryptocurrency by yet another 7% to reach 61% currently. Allocations to Ripple (XRP), Bitcoin Cash (BTC) and Litecoin’s (LTC) stood at 10.1%, 6.3%, and 3.2%, respectively.